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TMI Blog2017 (5) TMI 534X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalty on legal grounds. The revenue has not raised any serious objections against the same and since the grounds are purely legal in nature and do not require appreciation of new facts, the same is admitted. With this background, we proceed with the assessee's appeal. 2. Facts leading to the dispute are that the assessee, being resident corporate assessee, was assessed u/s 143(3) wherein the assessee suffered certain depreciation & interest disallowances u/s 32 & 43B vide Assessing Officer [AO] order dated 12/12/2008 which led to initiation of penalty for furnishing of inaccurate particulars of income by issuance of notice u/s 274 read with Section 271(1)(c). Finally, the assessee was saddled with a penalty of Rs. 12,50,056/- against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chnical in nature, do not carry much weight. 5. We have heard the rival contentions and perused the relevant material on record including cited case laws. So far as the legal grounds are concerned, a perusal of quantum order reveals that the penalty was initiated for furnishing of inaccurate particulars and finally the same was levied on the same ground. Undoubtedly, notice u/s 274 was duly served on the assessee and the relevant clause of the standard printed form was duly ticked by the Ld. AO which shows due application of mind qua penalty proceedings. Mere non-deletion of few words, in our opinion, on the facts of the case, has not caused any prejudiced to the assessee particularly when the penalty proceedings were actively contested by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertheless, the suspension of business was only temporary in nature as noted by the Board of Directors of the company. Further, the assessee has been imposed penalty against disallowance of deprecation u/s 32 on the premises that no business operations were carried on by the assessee during the year, nevertheless, the block of assets did not cease in the books of accounts and as the suspension in business was temporary, depreciation thereof was allowable to the assessee as per various judicial pronouncements. Further, the assessee suffered another disallowance u/s 43B only due to non-payment thereof within the stipulated time period. However, the nature or quantum of the same was never in dispute and the assessee, following mercantile system ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock of asset in the books of accounts did not cease to exist and the assessee has duly explained that the suspension in business was temporary which could not be controverted by the revenue. All these factors gives strength to the various arguments of Ld. AR. So far as addition u/s 43B is concerned, we find that the nature or quantum thereof is not in dispute and the assesse, following mercantile system of accounting could debit the same in his Profit & Loss Account. It was only due to the specific provisions of Section 43B that it has suffered the said disallowance. Therefore, on the basis of these factors, we find that there were no furnishing of inaccurate particulars of income by the assessee and the penalty deserves to be deleted. Our ..... X X X X Extracts X X X X X X X X Extracts X X X X
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